nicholson微观经济理论（答案+PPT+习题库）-ch02.ppt

Chapter 2 THE MATHEMATICS OF OPTIMIZATION The Mathematics of Optimization Many economic theories begin with the assumption that an economic agent is seeking to find the optimal value of some function consumers seek to maximize utility firms seek to maximize profit This chapter introduces the mathematics common to these problems Maximization of a Function of One Variable Simple example: Manager of a firm wishes to maximize profits Maximization of a Function of One Variable The manager will likely try to vary q to see where the maximum profit occurs an increase from q1 to q2 leads to a rise in ? Maximization of a Function of One Variable If output is increased beyond q*, profit will decline an increase from q* to q3 leads to a drop in ? Derivatives The derivative of ? = f(q) is the limit of ??/?q for very small changes in q Value of a Derivative at a Point The evaluation of the derivative at the point q = q1 can be denoted First Order Condition for a Maximum For a function of one variable to attain its maximum value at some point, the derivative at that point must be zero Second Order Conditions The first order condition (d?/dq) is a necessary condition for a maximum, but it is not a sufficient condition Second Order Conditions This must mean that, in order for q* to be the optimum, Second Derivatives The derivative of a derivative is called a second derivative The second derivative can be denoted by Second Order Condition The second order condition to represent a (local) maximum is Rules for Finding Derivatives Rules for Finding Derivatives a special case of this rule is dex/dx = ex Rules for Finding Derivatives Suppose that f(x) and g(x) are two functions of x and f’(x) and g’(x) exist Then Rules for Finding Derivatives Rules for Finding Derivatives If y = f(x) and x = g(z) and if both f’(x) and g’(x) exist, then: Rules for Finding Derivatives Some examples of the chain rule include Example of Profit Maximization Suppose that the relationship between profit and